PARTICIPATING MEMBERS DEPOSIT BANKS n BANK OF TUNISIA (BT) n BANK FOR HOUSING (BH) n TUNISIAN BANKING COMPANY (STB) n NATIONAL AGRICULTURAL BANK (BNA) n ARAB INTERNATIONAL BANK OF TUNISIA (BIAT) n BANK OF THE SOUTH (BS) n ARAB TUNISIAN BANK (ATB) n FRANCO-TUNISIAN BANK (BFT) n AMEN BANK (AB) n INTERNATIONAL BANKING UNION (UIB) n BANKING UNION FOR TRADE AND INDUSTRY (UBCI) n CITIBANK n TUNISIAN SOLIDARITY BANK (BTS) n ARAB BANKING CORPORATION (ABC) DEVELOPMENT BANKS n TUNISO-KUWAITI DEVELOPMENT BANK (BTKD) n TUNISO-SAUDI INVESTMENT AND DEVELOPMENT COMPANY (STUSID) n TUNISO-QATARI INVESTMENT BANK (BTQI) n TUNISO-EMIRATES INVESTMENT BANK (BTEI) n TUNISO-LIBYAN ARAB BANK FOR DEVELOPMENT AND FOREIGN TRADE OTHER MEMBERS n NORTH AFRICA INTERNATIONAL BANK n TUNISIAN BUSINESS BANK LEASING COMPANIES n ARAB TUNISIAN LEASE n TUNISIA LEASING n INTERNATIONAL LEASING COMPANY n GENERAL LEASING n TUNISIAN LEASING UNION n AMEN LEASE n ARAB INTERNATIONAL LEASE n MODERN LEASING n HANNIBAL LEASE n EL WIFACK LEASING FACTORING COMPANIES n UNIFACTOR n TUNISIA FACTORING ASSOCIATE MEMBERS n TUNISIAN CLAIM COLLECTION COMPANY (Sté Tunisienne de Recouvrement des Créances) n RAPID COLLECTION COMPANY (Société Rapid Recouvrement) n FINANCIAL CLAIM COLLECTION COMPANY (Sté Financière de Recouvrement des Créances) n CLAIM COLLECTION GROUP (L’Internationale de Recouvrement des Créances) n ARAB INTERNATIONAL COLLECTION COMPANY (Compagnie Internationale Arabe de Recouvrement) n SOUTHERN COLLECTION (Sud Recouvrement) n EL ISTIFA COMPANY (Société El Istifa) n GENERAL CLAIM COLLECTION COMPANY (Société Générale de Recouvrement des Créances) MEMBERS OF APTBEF’S GOVERNING COUNCIL Chairman : Mr. Faouzi BELKAHIA, President Director General of the Bank of Tunisia. Banking Section : Vice Chairman : Mr. Aissa HIDOUSSI, (Chairman of the Banking Section), President Director General of the Bank for Housing until 8 October 2003. Members :- Mr. Hedi ZAR, (Treasurer), Chairman of the National Agricultural Bank’s executive board. - Mr. Brahim SAADA, Chairman of the Tunisian Banking Company’s executive board. - Mr. Chakib NOUIRA, Chairman of the Arab International Bank of Tunisia’s executive board. - Mr. Abdelwaheb NACHI, President Director General of the Tuniso-Saudi Investment and Development Company. - Mr. Bechir TRABELSI, President Director General of the Bank of the South. - Mr. Abdelghaffar EZZEDDINE, Director General of the Tuniso-Qatari Investment Bank. - Mr. Abous Hafs Amor NAJAI, President Director General of the Bank for Housing, since 8 October 2003. Financial Institutions Section : Vice Chairman : - Mr. Salah JEBALI, (Chairman of the Financial Institutions Section), President Director General of Arab Tunisian Lease. Members :- Mr. Ahmed ABDELKAFI, President Director General of Tunisia Leasing, until 21 May 2003 (Chairman of the Board since 22 May 2003). - Mr. Fethi MESTIRI, Director General of Tunisia Leasing since 22 May 2003. - Mr. Salah SOUKI, Deputy Director General of the International Leasing Company. - Mr. Raouf BOHLI, President Director General of the Factoring Union, until 14 October 2003. - Mr. Kamel BEN NJIMA, President Director General of the Factoring Union, since 15 October 2003. General Delegate : Mr. Mohamed Abderraouf BEN GHEZALA. TABLE OF CONTENTS I - TUNISIA’S ECONOMIC SITUATION 7 The international environment 9 9 Trends in the Tunisian Economy 12 II - MONETARY, FINANCIAL AND FOREIGN 17 EXCHANGE CONDITIONS IN 2003 15 III - BANKING LIQUIDITY AND 25 THE STATUS OF MONETARY BALANCE 23 IV - CONDITIONS WITHIN THE BANKING SYSTEM 31 AND AT SPECIALIZED FINANCIAL INSTITUTIONS 30 Conditions at banks 32 31 Conditions at deposit banks 33 Conditions at development banks 41 Conditions at financial institutions 45 Conditions at leasing companies 46 47 Conditions at factoring companies 49 51 V- APTBEF’S REPORT ON 2003 ACTIVITIES 52 55 VI- APPENDIX 69 DEPOSIT BANK BALANCE SHEETS AND INCOME STATEMENTS 71 DEVELOPMENT BANK BALANCE SHEETS AND INCOME STATEMENTS 101 1010 FINANCIAL INSTITUTIONS BALANCE SHEETS AND INCOME STATEMENTS 112 Leasing Company Balance sheets and income statements 113 Factoring Company Balance sheets and income statements 135 OTHER MEMBERS BALANCE SHEETS AND INCOME STATEMENTS 141 DEPOSIT BANK NETWORKS 147 147 VII- THE BANKING POPULATION IN 2003 171 I TUNISIA’S ECONOMIC SITUATION Tunisia’s Professional Association for Banks and Financial Institutions Website : www.apbt.org.tn TUNISIA’S ECONOMIC SITUATION THE INTERNATIONAL ENVIRONMENT After rather disappointing progress throughout 2002 and into April 2003, world economic recovery had firmly taken hold by the middle of 2003. In effect, despite ongoing fallout from geopolitical tension, terrorist threats, and the SARS epidemic the world economy grew by 3.9% in constant terms, compared to 3% in 2002. This improved rate was due in particular to vigorous growth in the United States, Asian and Gulf countries, further consolidated by the beginning of recovery in Japan. On the other hand, growth was down in the euro zone, at just 0.4% in real terms. If the euro zone is excluded, gross domestic product would be 5%. Sustained economic recovery worldwide was favored in particular by : - Expansionary monetary and budgetary policies, with key rates reaching record lows and budget deficit rates record highs, and - Tax breaks that boosted household expenditure. Unemployment stopped rising, even dropping in a number of countries such as the United States(1) and Japan, thanks to high economic growth. 2003 was also marked by ongoing appreciation of the euro against most of the strongest currencies, especially the US dollar. Despite policies supporting recovery, inflation remained tolerable in the United States, which enjoyed overall vigorous economic recovery. TRENDS IN THE MAIN ECONOMIC AND FINANCIAL INDICATORS WORLDWIDE DESCRIPTION INFLATION UNEMPLOYMENT GDP GROWTH (variation BUDGET BALANCE AS A % OF THE INTEREST RATES (in volume & in %) in consumer (IN % of GDP) WORKING IN %(3) prices %)(2) POPULATION COUNTRIES 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 Total for developed countries 1.7 2.1 1.5 1.8 -3.1 -4.0 6.4 6.6 NA NA of which : United States 2.2 3.1 1.6 2.3 -3.3 -4.9 5.8 6.0 1.24 0.98 Japan - 0.3 2.7 -0.9 -0.3 -7.9 -8.2 5.4 5.3 0.0 0.0 European Union 1.1 0.8 2.1 2.0 -2.0 -2.6 7.7 8.2 NA NA of which: Euro zone 0.9 0.4 2.3 2.1 -2.3 -2.7 8.4 8.8 2.95 2.09 France 1.2 0.2 1.9 2.2 -3.2 -4.1 8.8 9.3 3.00 2.25 Developing countries 4.6 6.1 6.0 6.1 -4.8 -4.1 NA NA NA NA of which : Tunisia 1.7 5.6 2.7 2.7 -2.0 -2.6 14.9 14.3 5.875 5.0 Morocco 3.2 5.5 2.8 1.2 NA NA NA NA NA NA South Africa 3.6 1.9 8.9 6.0 NA NA NA NA NA NA Chile 2.2 3.3 2.5 2.8 NA NA NA NA NA NA Source: 2003 BCT Annual Report. [World economic prospects and international financial statistics from the IMF. Ministry of Development & International Cooperation and the National Institute of Statistics (INS) for statistics relating to Tunisia]. (1) In January the unemployment rate was 5.6%. (2) Base 100 in 1995. (3) Money market rate for December of each year , except for France (interest rate on deposits) and Tunisia (call for bids rate). - NA : Not Available. Tunisia’s Economic Situation Annual Report 2003 9 Tunisia’s Professional Association for Banks and Financial Institutions Website : www.apbt.org.tn n Activities in the countries that contribute most to world economic growth showed the following trends : In the United States, the first signs of economic recovery showed up in 2002 (2.2% of GDP growth) and continued into 2003, as concern over international conditions faded somewhat starting in the second quarter. The US growth rate rose to 3.1% in constant terms. Accommodating monetary, tax and budgetary policies boosted household and business expenditure. In particular, very favorable generalized conditions for financing economic activities boosted the real estate and investment markets. In effect, after two years of falling rates, this aggregate increased by 4.3%. This dynamic situation brought about a decrease in unemployment, which fell from 6.4% in June 2003 to 5.6% in January 2004. Japan once again enjoyed economic growth in 2003 (2.7%), up from -0.3%, thanks to increased exports and private investment in the wake of renewed external demand especially from Asian countries. The ongoing deflation that has plagued the country finally tapered off, coming in at -0.3% vs. - 0.9% in 2002. Other Asian economiesstood up to adverse events in 2003: geopolitical tension in Iraq and North Korea and the SARS epidemic, with external demand the main factor for dynamic activity in the region. China posted the highest growth rate in the region: 9.1% in real terms. n In Latin America, despite ongoing recession particularly in Brazil and Mexico, there was gradual improvement in other countries of the region that had suffered financial crises. Argentina enjoyed strong GDP growth: 8.7% vs. -10.9% in 2002. The end of the major strike in Venezuela and the commitment by Brazil’s new government to further pursue economic reform both contributed to economic recovery in the region. Thus the economy grew by 1.7% in 2003, compared to -0.1% a year earlier. Growth in the euro zone, however, did not follow the worldwide pattern of recovery, with economic growth up just 0.4% vs. 0.9% the year before. France posted 0.9% growth vs. 1.2% in 2002. Economic activity in Germany fell by 0.1% after barely positive growth of just 0.2% in 2002. This drop was due in particular to sluggish exports, fairly moderate trends in household expenditure, and stagnation in business investment levels.